3 Value Stocks I’d Buy Right Now

SmartCentres Real Estate Investment Trst (TSX:SRU.UN) and these two other stocks offer investors great value for their money.

| More on:
Dice engraved with the words buy and sell

Image source: Getty Images.

If you focus on value rather than growth prospects or future expectations, then you risk will be minimized over the long term. By evaluating where a company is today, you’re basing your assessment on real sales and profits that have already been achieved, rather than having to project where a company might be in the years ahead.

You can have all the complex calculations you want to estimate future growth, but there’s no guarantee it’ll be close. There’s a lot of risk that growth may not be realized, or issues come up that drastically change it, and that can make your portfolio’s returns very uncertain.

Below are three stocks that are good value buys that I would consider buying today.

SmartCentres Real Estate Investment Trst (TSX:SRU.UN) is an attractive investment because the REIT has some strong tenants anchoring its locations, and high occupancy rates give it a lot of stability. Since 2013, the company’s sales have grown by 31%, averaging a compounded annual growth rate of 5.5%.

Even more importantly, SmartCentres has averaged a strong 42% profit margin as well, ensuring strong future growth as well as a stable dividend. Its monthly dividend currently produces annual returns of 5.8%, which will help to make up for the fact that the stock is down year to date.

At a price-to-earnings ratio of 14, and the stock trading 1.2 times its book value, SmartCentres stock offers great value for your money. Another reason I like the stock is that it’s likely undervalued given how bearish investors have been on REITs this past year, and that could mean a lot of upside for those that buy today.

Seven Generations Energy (TSX:VII) is a growth stock that still trades at a value stock’s price. Despite showing tremendous growth over the years, investors have not shown a lot of excitement behind the stock. And while the oil and gas industry is still a little risky, Seven Generations continues to produce strong results, despite the current conditions.

The stock trades at 14 times its earnings and around 1.2 times its book value, which are multiples lower than the industry averages. As things continue to improve in the industry, Seven Generations is a good stock to hold, as its financials will only get stronger. However, the company has been able to produce strong results even during the downturn, which is something not many in the industry can claim.

Fairfax Africa Holdings Corp. (TSX:FAH.U) offers investors a unique way to diversify their portfolios in a part of the world that many companies simply don’t have a presence in. Africa remains a great opportunity for long-term growth, and Fairfax focuses on value and long-term capital appreciation, making it very appealing to value investors.

There’s a lot of opportunity in that part of the world in the years to come, but that doesn’t mean Fairfax Africa isn’t a good buy today. Currently, the stock is valued at nine times its earnings and is trading right around its book value, so investors won’t have to pay a big premium in order to grab this great investment opportunity.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor David Jagielski has no position in any of the stocks mentioned.

More on Investing

A cannabis plant grows.
Cannabis Stocks

Canopy Growth Stock Is Rising But I’m Worried About This One Thing

Canopy Growth stock is soaring as the legalization effort makes real progress in both Germany and the United States.

Read more »

young woman celebrating a victory while working with mobile phone in the office
Investing

3 Roaring Stocks to Hold for the Next 20 Years

These top TSX stocks are excellent long-term buys, given their multi-year growth potential and solid underlying businesses.

Read more »

Two seniors float in a pool.
Dividend Stocks

TFSA: How to Earn $1,890 in Annual Tax-Free Income

Plunk these investments into your TFSA to earn passive income and avoid the taxman.

Read more »

grow dividends
Investing

Here’s My Top 3 TSX Stocks to Buy Right Now

Even though the TSX has been rising, there are still some good bargains out there. Here are three top compounding…

Read more »

Target. Stand out from the crowd
Investing

Prediction: This Canadian Growth Stock Could Double by 2030

Alimentation Couche-Tard (TSX:ATD) is a top growth stock that could do well over the next six or so years.

Read more »

Businessman holding AI cloud
Tech Stocks

Could Investing $20,000 in Nvidia Make You a Millionaire?

Nvidia stock has made investors millionaires in the last 10 years. Is it too late to invest to become a…

Read more »

Engineers walk through a facility.
Dividend Stocks

1 TSX Stock I Wouldn’t Touch With a 10-Foot Pole

AtkinsRéalis (TSX:ATRL) is one TSX stock I'd never invest in.

Read more »

money cash dividends
Stocks for Beginners

Have $500? 3 Absurdly Cheap Stocks Long-Term Investors Should Buy Right Now

If you're looking for cheap stocks, these three have a huge future ahead of them, all while costing far less…

Read more »